Resources

June 02,2017

On May 18, the
Ministry of Land and Resources of the People’s Republic of China held an
on-the spot meeting at the Blue Whale 1 semi-submersible drilling rig
in the Shenhu Area of the Northern South China Sea to announce China’s
first successful pilot production of natural gas hydrates.

CNPC is a partner
in the pilot production project of the China Geological Survey (CGS),
which is under the Ministry of Land and Resources. Natural gas has been
extracted from the gas hydrate deposits at a depth of 1,266 meters below
sea level since May 10. As of 10 am on May 18, more than 120,000 cubic
meters of natural gas had been yielded, with the highest instant output
of 35,000 cubic meters per day and an average daily output of more than
200,000 cubic meters. The methane content of the produced gas is up to
99.5%. At present, the project is operating normally and maintaining a
steady output. The target for daily production of 10,000 cubic meters
for one week has been overfulfilled. This marks a major innovation in
theory, technology and engineering. It is a historic breakthrough in
China’s technology and engineering for gas hydrate exploration and pilot
production, and is of great significance to securing China’s energy
security and optimizing its energy mix.

CNPC Offshore
Engineering Company Limited (CPOE) is the general contractor of the
pilot production. Drawing on overseas experience and based on CNPC’s
expertise in drilling engineering, CPOE has carried out elaborate
planning, design and operation in terms of deepwater drilling and
completion, sand control for silty reservoirs, HSE, and well control,
guaranteeing success in China’s first attempt to test marine natural gas
hydrates.

CNPC Chairman Wang
Yilin attended the meeting and visited the operating personnel of CPOE
at the rig platform. He expressed his appreciation to the crew members
and was informed about the progress of the project. Mr. Wang commented
that the success of the pilot production adds a new strategic
alternative source of energy to fossil fuels in China, marks significant
progress in CNPC’s deepwater drilling capacity, and provides CNPC with
valuable experience in marine exploration. He called for CPOE to further
deepen cooperation with relevant parties, make consistent efforts to
address technical difficulties through in-depth research, and explore
ways to commercially tap deepwater gas hydrates, in order to make its
due contribution to securing national energy security and improving the
environment.